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Growth and inequality in the Mexican states: Regimes, thresholds, and traps

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  • Juan Gabriel Brida
  • W. Adrian Risso
  • Edgar J. Sánchez Carrera
  • Verónica Segarra

Abstract

Using the inter‐regional economic inequality index and the gross state product per capita for the Mexican states over the period 1940–2015, we apply regime dynamics and hierarchical cluster analysis for segmenting the sample into regimes of Mexican states with similar performance. Robust econometric models are studied showing the direction of causality between economic inequality and income per capita, and the existence of a U‐shaped curve for the interdependence between economic growth vs economic inequality, and threshold levels. We additionally demonstrate the existence of inequality traps. The education literacy rate as a control variable indicates an inverted U‐shaped curve. Se utilizó el índice de desigualdad económica interregional y el producto estatal bruto per cápita de los estados mexicanos durante el periodo 1940‐2015 con el fin de aplicar una dinámica de regímenes y el análisis de cluster jerárquico para segmentar la muestra en regímenes de estados mexicanos con un desempeño similar. Se estudiaron modelos econométricos robustos que muestran la dirección de la causalidad entre la desigualdad económica y la renta per cápita, y la existencia de una curva en forma de U para la interdependencia entre el crecimiento económico frente a la desigualdad económica, y los niveles de umbral. Además, se demostró la existencia de trampas de desigualdad. La tasa de alfabetización educativa como variable de control indica una curva en forma de U invertida. 1940~2015年のメキシコの各州における地域間の経済的不平等指標と1人当たり国民総生産を用いて、レジーム動態と階層的クラスター分析により、パフォーマンスが同等の州ごとのレジームにサンプルを分割した。経済的不平等と1人当たり所得との因果関係の方向性と経済成長と経済的不平等の相互依存関係を示すU字型曲線の存在、閾値レベルを示す頑健な計量経済モデルを検討する。さらに、不平等の罠(inequality traps)の存在も確認する。対照変数としての教育と識字率は、逆U字曲線を示す。

Suggested Citation

  • Juan Gabriel Brida & W. Adrian Risso & Edgar J. Sánchez Carrera & Verónica Segarra, 2021. "Growth and inequality in the Mexican states: Regimes, thresholds, and traps," Papers in Regional Science, Wiley Blackwell, vol. 100(5), pages 1295-1322, October.
  • Handle: RePEc:bla:presci:v:100:y:2021:i:5:p:1295-1322
    DOI: 10.1111/pirs.12616
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